The job of Credit Manager (also known as Customer Risk Manager, Customer Credit Manager or Credit Controller) is at the heart of the company's financial activity, since it ensures the security of sales and transactions.
The Credit Manager: function and missions
The credit manager's mission is to ensure the proper payment of sales concluded by the company. To do this, he/she ensures the solvency of the customers as well as the actual arrival of the money in the company. This work is based on different processes depending on the customers and the amounts involved. Thus, the credit manager can rely on statistical studies to take into account certain smaller invoices, but will have to carry out a much more advanced management for transactions established with major accounts. The Credit Manager is therefore also responsible for designing and drafting tailor-made contracts and negotiating the clauses necessary to guarantee payment conditions. His/her objective is to accelerate cash receipts in order to feed the company's cash flow. He/she works closely with the litigation departments, but also with the banking institutions.
The precise nature of his duties varies according to the company in which he works, the amount of invoices he handles, as well as the nature of the activity and the type of clientele concerned.
The tasks of the Credit Manager:
- Verification of cash inflows
- Definition of the company's credit and recovery policy
- Evaluation of the solvency of the debtors
- Creation and negotiation of contracts
- Drafting of specific clauses
- Verification of payment deadlines
- Organization of dunning operations
- Follow-up of disputes
Credit Manager: required skills
The Credit Manager must master many areas of skills and knowledge in order to carry out his mission in the best possible way. His technical knowledge concerns different fields:
- Cost accounting
- Financial management
- Business law
- Mastery of ERP (Enterprise Resource Planning) or other and scoring methods (risk analysis techniques)
Education level to become a Credit Manager training: a 5-year degree in finance
It is very rare to see a young graduate become a Credit Manager directly. He or she will first work as an assistant or credit analyst in order to acquire the accounting experience necessary to take on the responsibility of Manager. These functions are accessible to experienced candidates with a 5-year degree in accounting, management, finance and law.
Master's degrees from business schools offer training that is particularly attractive to both students and companies. The complementary specialties offered allow graduates to benefit from solid knowledge in the accounting field as well as in management and corporate finance. This theoretical training is complemented by enriching field experience, either through internships or work-study programs.
The different diplomas allowing access to the position of Credit Manager :
- Master's degree in corporate finance and treasury from a business school, engineering school, IAE or university.
- Master in business law
- French DSCG (higher diploma in accounting and management)
Career development and salary of the Credit Manager
The Credit Manager will naturally evolve towards positions related to accounting analysis and financial risk analysis. Indeed, his experience will lead him to emphasize one of the transversal functions such as finance, legal, treasury or even the commercial aspect.
Salaries in France for a credit manager range from 2,900 euros to 3,700 euros per month for a beginner, then around 5,000 euros per month for a more experienced profile (with an average salary of €50,971 per year in France, $78,134 per year in the United States). As is often the case, the level of remuneration is linked to the size of the company and its activity.
